One Possible Solution to an Incentive Problem Arising Under Unobservable

Multiple Choice

One possible solution to an incentive problem arising under unobservable actions is:

A) to pay more and make the worker efficient.
B) to be the boss and fire the inefficient worker and send a signal to others.
C) to buy the agent's right to his total output.
D) to sell the agent the right to the total production.